We must have forgotten the massive Savings $ Loan Bailout of 1989. Reagan and Bush 41 were the presidents who presided over the deregulation of those S & L's and the largest corporate bailout in our history - $32 billion for 30 years! By 2020, that will approach $1 trillion! That money keeps coming from taxpayers and goes to the people who bought those 30 year bonds. And the rich get richer!
FYI, another son of Bush 41, Neil Bush, was involved in that crisis, as director of the Silverado Savings and Loan. That one alone cast taxpayers $1.6 Million. The cause of the S & L crisis? Deregulation that opened the door to wild and speculative real estate investments.
However, the costs of that bailout were more far-reaching than even those staggering figures suggest. The real costs were felt yesterday, when the Federal Reserve Board bailed-out Bear Sterns for $30 million. Bear Sterns was one of the biggest cowboy investment banks plundering the sub-prime mortgage business - our current crisis. The S & L bailout of 1989 sent a clear message to the cowboys out there. It's green light for greedy, high-risk, speculative real estate investments. If you get in trouble, the government (that's us, the taxpayer) will bail you out. Don't worry, no one in this Bush administration is minding the store and there will be no heavy handed regulation - or any at all for that matter!
Meanwhile, once again, the John and Jane Doe's are losing their homes all across the country. Will we ever see a bailout for the average taxpayer?
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